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Japan Electric Vehicle Charging Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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    Report

  • 70 Pages
  • June 2022
  • Region: Japan
  • Mordor Intelligence
  • ID: 4514885
The Japan Electric Vehicle Charging Equipment Market was valued at USD 0.2 billion in 2021 and the market is expected to register a CAGR of more than 44% during the Forecasts period (2022-2027).

The market has been negatively impacted with the outbreak of pandemic COVID-19. The sales of electric vehicles in the country was hampered and the market share of electric vehicles is very low. Major reason for the low sales during the year was the strict lockdown measures as economic activities were stopped for a long time during the year. In march 2020, it has been recorded that the number of charging stations in the country reduced by around 1,087 to 29,233 charging stations. The reason for the reduction in charging stations is electric vehicles account for only one percent of the new cars sold in Japan because of which the charging stands are not being used very much. Some of them are outdated and others have been removed.

The number of stations had been growing steadily in Japan since fiscal 2010. In 2010, there were around 310 charging stations in the counrty, which increased to more than 30,000 stations in the year 2021.

The Japan government is boosting the sales of geen fuel vehicles and have an ambitious plan that all the new vehicles sold by 2035 would be powered by electricity, both electric and hybrid electric vehicles, this will enhance the the demand for electric vehicle charging equiment during the Forecasts period.

Key Market Trends


Government Initiatives to Boost Electric Vehicle Sales in the Country


Surging carbon emission by the transportation sector has propelled the environmental concern across Japan, which is scrutinized by Japan government by encouraging the adoption of electric vehicles, i.e., HEVs, PHEVs, and BEVs. With this, the number of electric vehicles on the road is constantly increasing, which is likely to drive the demand for associated charging infrastructure.

The five largest passenger car market includes China, the United States, Germany, India, Japan. Along with several other countries across the world, Japan has committed to net zero-emission passenger car sales.
  • In December 2020, Japan government introduced a green growth strategy to make Japan carbon neutral by 2050 by promoting electric vehicles, fuel cell electric vehicles, plug-in hybrid vehicles, and hybrid vehicles.
  • With these implementations, Japan seeks to reduce the emission impact from the transportation sector to achieve the GHG (Green House Gas) reduction goals under the Paris agreement.
The concentration of charging stations in Japan is quite less in comparison to other developed countries, which indicates massive growth potential in coming years. For instance, in 2021, Japan had only 1.7 charging stations per 100 km of roadways, whereas South Korea had around 75.2. In 2020, Japan had a total of 29,855 charging stations (21,916 sallow chargers and 7,939 fast chargers). Although, Japan accounts for the second position in charging technology patents across the world with more than 1,310 patent filings.

Japan have long-term goal and strategies for the automotive industry to beat climate change and minimize carbon emission. For the next half-decade government has set three key actions to promote the electric vehicle, which include promotion of innovations, Policies, and investment in infrastructure.
  • Promotion for innovation, the development of lithium-ion batteries as well as building economic procurement channels, developing next-generation technologies.
Through policies, the country is focusing on robust the global supply chain, incorporating international electrification policies, and maximizing the fuel standards.
  • In Infrastructural development, the primary focus would be on building a battery network by stabilizing the battery components procurement, establishing a guideline for used batteries to reuse/recycle, investment in research and development of wireless charging infrastructures. In November 2021, Japan government had announced to double their incentives for electric vehicles to 800,000 Yen per vehicle and subsidizes charging infrastructure to catch up with matured economies, including North America and Europe region.


High Cost of Installation and Maintenance


The cost of setting up an EV charging station is quite high and varies according to the type of chargers being installed. In order to set up the EV charging infrastructure, minimum infrastructure requirements need to be fulfilled, and finding the right vendor, and the right location is important. The costs of charging infrastructure include both fixed (installation, utility service, transformers, and equipment) and variable (electricity charges) components.

For chargers on commercial electricity tariffs, demand charges can dominate operating costs. As a result, the total cost of power from fast-charging stations is higher than slower residential chargers unless the former can achieve sufficiently high utilization rates.

At current levels of utilization, commercial chargers are almost universally not economically profitable. A significant, sustained increase in demand will be needed for commercial charging infrastructure to deliver financial returns and compete with IC engines.

The high concentration of EV home charging during peak periods can overload local transformers. Utilities may have to procure additional peak capacities unless they are able to shift demand to off-peak periods.

There are three types of chargers available for EVs. The standard 120V plug, often used for home appliances, charges slowly but can fill a battery to near-full capacity in about 8 to 12 hours. The 240V level-2 chargers generally provide 20 to 25 miles of charge in an hour, which shortens charging time to eight hours or less. In homes, level-2 chargers can use the same outlet type required for clothes dryers or electric ovens. Level-3 direct current (DC) fast chargers can charge a battery up to 80% in 30 minutes.

Three different varieties of DC fast chargers are used by different auto manufacturers. The SAE Combined Charging System (CCS) is used by most manufacturers, the CHAdeMO variant is used by Nissan and Mitsubishi, and the Tesla Supercharger is used by only Tesla cars. This lack of vehicle compatibility restricts universal vehicle access to charging stations and could hinder the market growth.

Choosing to deploy high-powered energy chargers needs to be done carefully to ensure stations have high utilization. The profit potential of charging stations is quite low in the current scenario. The profitability may only increase when there are enough electric cars on the road so that the infrastructure could have a high utilization rate. Consumer preference is more leaned towards the hybrid vehicles, which significantly restraints the sales of BEVs; for instance, the sales of BEVs in 2020 was 14,604 units, whereas the hybrid vehicles have surpassed the sales volume of 1,324,800 units during the same tenure.



Competitive Landscape


The Electric vehicle charging station market is fairly consolidated, with a major market share being coverd by few companies. Some of the major players in the market are ABB, Delta Electronics Inc., Toyota and others. the major players in the country are entering into joint ventures with other players to develop latest technology.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support


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Table of Contents

1 INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porters Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 End Use
5.1.1 Home Charging
5.1.2 Public Charging
5.2 Charging Station
5.2.1 AC Charging Station
5.2.2 DC Charging Station
6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 ABB Ltd.
6.2.2 Delta Electronics, Inc.
6.2.3 e-Mobility Power., Inc.
6.2.4 Toyota Connected Corporation
6.2.5 Tesla Inc.
6.2.6 Aoyama Elevator Global Ltd.
6.2.7 Tritium Charging
6.2.8 NEC Telecommunication and Information Technology, Ltd.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS

Companies Mentioned

A selection of companies mentioned in this report includes:

  • ABB Ltd.
  • Delta Electronics, Inc.
  • e-Mobility Power., Inc.
  • Toyota Connected Corporation
  • Tesla Inc.
  • Aoyama Elevator Global Ltd.
  • Tritium Charging
  • NEC Telecommunication and Information Technology, Ltd.

Methodology

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